From the start of 2019, listed companies in the UK will be obliged to publish – and justify – the pay gap that exists between their chief executive and staff. The new measure was announced on Sunday 10 June by Theresa May’s government, with a bill set to be unveiled to parliament on Monday. This flagship measure of the country’s all-new industrial strategy is an unprecedented reform and had been promised close to one year ago. It comes at a time when the behaviour of certain highly-paid bosses, sometimes dubbed ‘fat cats’, has been subject to criticism.
Announced back in August 2017 (see article n°10327), the reform follows concerns “that some chief executives have been receiving salaries that are out-of-step with company performance”, the UK government announced on Sunday, on the eve of the bill’s unveiling in parliament.
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